The Best Auto Insurance for Young Adults: A common misconception among young adults is that car insurance doesn’t apply to them because they are either new to driving or don’t own their car yet. However, car insurance applies to everyone, regardless of age, in some way. This article explains the best auto insurance for young adults and why it’s important to have good coverage, even if you don’t own your vehicle yet and can’t get your own policy.
Get quotes from multiple providers
To find out which auto insurance provider is best for you, it’s important to get quotes from as many insurers as possible. Begin by shopping around with a price comparison tool like Esurance and then narrow down your list of providers based on additional factors such as annual premiums, deductibles, etc. You can also call your local insurance agents and see what they have to offer. It’s never a bad idea to speak with multiple agents in person if you’re considering buying auto insurance from a company that doesn’t give online quotes or if you’re hoping to get a personal recommendation about which insurer is best. If you’ve got some time on your hands and want to go through all of these steps, it’ll pay off big time in terms of saving money. Good luck!
Shop around
When you’re a young adult, your car insurance needs are typically different from an older person’s. You may be more likely to make mistakes behind the wheel, which can increase your risk of accidents and tickets. That means you probably shouldn’t just stick with what your parents have been using. In fact, you may want to shop around a bit before settling on one carrier. The good news is that shopping around for auto insurance can save you money; our site offers tools that make it easy to compare quotes in less than five minutes!
Know what types of coverage you need
Each state sets its own car insurance requirements, but certain coverage types are common. In particular, you’ll want bodily injury and property damage liability coverage to protect yourself from those who might sue you if they get injured in a car accident that was your fault. You’ll also want uninsured/underinsured motorist bodily injury coverage in case someone hits you and doesn’t have enough insurance to cover your costs. And if there are multiple drivers on your policy (such as one spouse and one parent), then personal injury protection might be worth adding so that each family member is covered in an accident situation. Also, depending on how old you are, it may make sense to add collision and comprehensive protection if appropriate—and never skimp on these things!
Know what discounts are available
Car insurance companies generally offer discounts to policyholders who meet certain criteria. If you’re a student or are married, for example, you may be eligible for a good driver discount that reduces your premiums. Other auto insurance discounts include bundling (enrolling multiple cars and drivers with one insurer), being a homeowner, having security measures in places like an alarm system or tracking device, or paying in full each month without financing. While these can be helpful ways to save money on your car insurance premiums, not all discounts are created equal and some can result in more of your hard-earned dollars going toward insurance coverage than if you weren’t getting a discount at all. Know what discounts are available so you know when it makes sense to enroll in them—and when it doesn’t.
Compare costs across different states and counties
It’s important to check out auto insurance rates in different states before you buy a car. If you get a vehicle in one state but live in another and commute, it might be worth spending a little more on car insurance to have coverage where you live instead of where your car is registered. You can also call up insurers and ask about their rates across different states. Some companies may even offer discounted rates if you register your vehicle in a state where they have many customers. But most importantly, start shopping around as soon as possible: young drivers are riskier than older ones and will pay higher premiums accordingly.
Understand your policy
When you’re young, it can be hard to grasp how vulnerable you are on a road full of erratic drivers. That’s why having good auto insurance is so important; it protects you from accidents caused by other drivers who aren’t paying attention. While driving without auto insurance may seem like an easy way to save money, in most states penalties can range from fines and demerit points to suspended licenses and jail time. If you’re lucky enough to not get caught, chances are you’ll probably come away from an accident without coverage or with only a basic policy that won’t cover all your costs.
Make sure you’re protected on the road
This is especially important if you don’t have many years of driving experience under your belt. Even if you’re on a tight budget, it’s worth your while to pay a little extra each month so that you can protect yourself financially in case of an accident. Finding out that you don’t have insurance—or worse, finding out after an accident—can be disastrous. Here are five things to look for when choosing a policy
Have all of your information handy at renewal time
There’s a lot to think about when it comes to buying car insurance, and you may find yourself wishing you had all of your information right at hand. You’ll need to look at coverage options, premiums, deductibles, etc., which can be quite confusing if you’re not an auto-insurance expert. Make sure that as your policy is coming up for renewal you’ve gathered all of your necessary documents and quotes. This way, you can shop around without being rushed or stressed about what might happen if things go wrong. And if something does go wrong, make sure that you have a list of all pertinent information available so that dealing with the issue becomes easier.
Drop unnecessary coverages
Unfortunately, young drivers are considered high-risk and as a result, may not be able to find affordable car insurance. One way to save money is to ensure you’re not paying for coverage you don’t need. For example, if your vehicle is already protected with comprehensive collision coverage, there’s no reason why you should also add those same coverages under your auto policy. The more comprehensive coverages you have under your policy, the higher premium it will likely be—so don’t waste money on unnecessary policies! Also, determine if you really need roadside assistance or uninsured motorist protection.
